Apple's Siri Dream Slips Further Away While Chinese AI Claims Profit Bonanza
Good Morning from San Francisco,
Apple's Siri revamp hits another speed bump - now delayed until 2027. Hardware shortages and leadership chaos mean we'll wait three more years for a truly conversational assistant. Sure, there's a quick fix coming in iOS 18.5, but Apple's playing catch-up while Amazon's Alexa+ already nails the basics.
Over in China, DeepSeek just dropped some jaw-dropping numbers: a theoretical 545% profit margin from their AI operations. Sounds too good to be true? Well, they admit real revenues are lower. Still, it's a rare peek into AI economics that has Silicon Valley buzzing.
Stay curious,
Marcus Schuler
Siri's Modern Makeover Won't Arrive Until 2027
Bloomberg reports Apple's plans for a truly conversational Siri are facing a major setback, with the launch now pushed to iOS 20 in 2027. The delay stems from hardware shortages, leadership issues, and technical challenges in merging old and new AI systems.
While an interim LLM-powered upgrade is coming in iOS 18.5, it's a band-aid solution. Apple's current dual-system approach – running basic commands alongside advanced AI features – isn't providing the seamless experience users expect. The company's "Apple Intelligence" features, including Genmoji and Image Playground, have landed with a thud, seeing minimal real-world usage.
Meanwhile, competitors aren't standing still. Amazon's Alexa+ boasts a complete architectural overhaul that successfully combines traditional and AI-powered features. Apple's response? Shuffling management by moving software veteran Kim Vorrath to the AI team.
The delay is particularly painful for Apple, which has watched its AI models hit their limits while struggling to secure essential Nvidia chips. Internal troubles, including what sources call "ineffective leadership" and a talent exodus, have only compounded the problems.
Why this matters:
- While Apple perfects Siri, rivals are redefining AI interaction – potentially threatening the iPhone's ecosystem advantage
- The tech giant that once led mobile innovation now risks becoming the flip phone of the AI era
Read on, my dear:
DeepSeek Claims 545% Theoretical Profit Margin
DeepSeek, a 20-month-old Chinese AI startup, has dropped a bombshell about its business model.
The company claims its V3 and R1 models could theoretically achieve a 545% profit margin based on one day's operations in February, though actual revenues are much lower.
The Hangzhou-based company's revelation offers a rare glimpse into AI economics. DeepSeek says it achieves these numbers through clever load balancing and optimized data processing, but cautions that the figures don't include R&D costs or account for discounted rates and limited monetization.
Meanwhile, U.S. rivals like OpenAI and Anthropic are still searching for sustainable business models. DeepSeek's disclosure comes as investors increasingly question the path to profitability in AI.
Why this matters:
- While most AI companies guard their numbers like state secrets, DeepSeek's transparency suggests confidence in its efficient approach
- The eye-popping margins, even if theoretical, hint at AI's potential profitability – if you can crack the code
Read on, my dear:
- DeepSeek on Github: Day 6: One More Thing, DeepSeek-V3/R1 Inference System Overview
AI Photo of the Day
Prompt:
A snake with diamonds all over its body, sparkling with gem like eyes, shining like stars against a red background, exquisite and luxurious design, elegant curves and complex diamond scales, eyes emitting vibrant gem like colors, exquisite and high-end aesthetics, shining highlights, magical and surreal atmosphere, vast and open space, ultimate luxury, charming beauty, high-quality visual effects, cinematic composition, vast feeling, soft and ethereal lighting
Underground Market for Nvidia Chips Thrives, WSJ Finds
The Wall Street Journal reports Chinese buyers are sidestepping U.S. export controls to snag Nvidia's latest AI chips through an underground network of traders.
These merchants route Blackwell and Hopper processors through third countries like Malaysia and Vietnam, commanding premiums up to $600,000 per server.
The schemes range from creative to brazen, according to the Journal's investigation. Some traders print fake serial numbers on old equipment to pass inspections. Others smuggle chips through human couriers. One vendor in Shenzhen even landed a $3 million order for Blackwell servers, promising delivery within weeks.
Despite stricter oversight in Singapore and Taiwan, the trade persists. Chinese universities have already received restricted Hopper chips, while tech giants stockpile permitted H20 processors before potential new bans hit.
Why this matters:
- The U.S.-China tech cold war has birthed a sophisticated gray market that makes export controls about as effective as a paper firewall
- Even as governments play chess with semiconductor policy, enterprising traders are playing hopscotch across borders
Read on, my dear:
Pentagon Orders Stand-Down on Russian Cyber Ops
Defense Secretary Hegseth has ordered U.S. Cyber Command to cease all operations against Russian digital threats, while CISA analysts have been told to stop tracking Moscow's cyber activities. This dramatic shift comes just as Microsoft exposed new Russian intelligence service attacks targeting government employees worldwide.
The timing raises eyebrows: LockBit, a Russia-based ransomware group previously labeled America's top cyber threat, remains active. Meanwhile, Cyber Command's hunt-forward teams, which helped protect Ukraine's digital infrastructure, are being pulled back.
Inside CISA, where Russian threats were once a primary focus, analysts watch their mission evaporate faster than their coffee breaks. "Russia and China are our biggest adversaries," one insider told The Guardian, adding that recent staff cuts leave U.S. systems exposed - and our adversaries know it.
Why this matters:
- America's cyber defenses are being dismantled at the speed of a keyboard shortcut
- Moscow's hackers haven't gone anywhere - they're just facing fewer obstacles than a tourist at Disney World
Read on, my dear:
Better Prompting: Turn ChatGPT Into Your Marketing Mercenary
🔥 1. The Sales Assassin’s Persuasion Script
I’m selling [product/service] to [ideal customer]. Give me a high-converting sales script that bypasses objections, triggers emotional urgency, and makes the customer feel like they’d be making a mistake not to buy. Use psychological triggers like scarcity, social proof, and loss aversion.
New Startup Flora Promises Pro-Grade AI Tools for Actual Creatives
Weber Wong has heard enough about AI art being "made by non-creatives for non-creatives." His new startup Flora aims to change that narrative entirely. The company launched this week with a bold manifesto and an even bolder vision: transforming AI from a toy into a professional power tool.
Flora doesn't build AI models. Instead, it provides an infinite canvas where designers can generate and manipulate AI-created text, images, and video. Think of it as a sophisticated playground where each creative decision branches into new possibilities, all mapped out visually.
The startup is already turning heads at Pentagram, the legendary design agency. Their designers are using Flora to generate hundreds of logo variations in the time it once took to create just one. It's like giving Mozart a digital orchestra - minus the powdered wig and elaborate court protocols.
While many AI tools promise creativity at the push of a button, Flora targets professional designers who demand more control. The company offers a free tier for dabblers, but its real focus is on professional users who'll pay $16 monthly for expanded capabilities.
Wong, a former venture capitalist turned art school graduate, launched Flora with an artistic flourish: streaming live GoPro footage from his own head, stylized in real-time by AI. Because nothing says "we're different" quite like turning your CEO into a walking art installation.
Why this matters:
- While other AI companies flood the internet with "AI slop," Flora is betting that professional designers will embrace AI - if it respects their need for creative control
- The startup's approach suggests a future where AI serves as a design collaborator rather than a replacement, much like how digital tools transformed photography without replacing photographers
Read on, my dear:
- Flora: Manifesto
AI & Tech News
Trump Backs Surprising Crypto Picks
President Donald Trump shocked the crypto world by naming XRP, Solana, and Cardano as initial picks for a U.S. strategic crypto reserve, only adding Bitcoin and Ethereum after backlash erupted. The move sent alternative cryptocurrency prices soaring, with Cardano jumping 63% in just two hours.In a striking policy shift, the SEC has also eased its previously strict stance on crypto regulation, dropping several investigations and lawsuits against cryptocurrency firms.
Google's AI Assistant Gets Screen-Smart
Google unveiled a screen-sharing feature for its Gemini AI at Mobile World Congress, letting users get real-time advice about anything on their display. The digital fashionista-in-training can now help you build outfits, though you'll need to shell out for the premium subscription to get its style tips.
Barcelona's Tech Show Goes All-In on AI
Barcelona's Mobile World Congress 2025 opens with artificial intelligence stealing the spotlight, drawing over 100,000 attendees eager to see innovations like Humane's now-successful AI Pin. While Xiaomi, Nothing, and Samsung showcase their latest phones, Lenovo turns heads with a vertically folding AI laptop.
Business Laptops Get AI-Powered Makeover
Lenovo unleashes seven new ThinkPads, with the T14s 2-in-1 leading the charge as the first convertible in the T-series lineup. Intel Core Ultra and AMD Ryzen AI Pro processors power this new generation, while the X13 Gen 6 tips the scales at a feather-light 2.05 pounds.
Musk's Time-Warped Internet Speak Revealed
A New York Times investigation explains why Elon Musk still talks like a 2010 Reddit user, from "epic" declarations to Doge memes. The billionaire's dated internet speak, which began with his Iron Man 2 cameo, has evolved into a deliberate strategy that both charms loyal followers and bewilders critics.
AI Decoded 🔓: Destillation
Your guide to mastering AI tools - no tech degree required.
Distillation: How Big Models Are Slimming Down
Massive language models are going on a diet. Tech companies have discovered a clever way to shrink these digital giants without sacrificing their smarts. The secret? A technique called distillation.
🧠 Think of it as teaching a smaller AI to mimic its bigger, smarter cousin. The process starts with a large "teacher" model showing a compact "student" model the ropes. The student learns not just what to say, but how to think - copying everything from basic responses to complex reasoning patterns.
💻 Companies like Google and Meta are racing to perfect this slimming technique. Their goal? Running powerful AI on your phone instead of massive data centers. Early results show these diet models can run up to ten times faster while keeping 95% of their capabilities.
👉 The benefits stretch beyond speed. These trimmed-down models cost less to run, use less energy, and can work without an internet connection. Some can even fit on a smartphone, bringing AI assistance to places without reliable internet access.
✳️ But there's a catch. Like any crash diet, the results aren't perfect. These slimmer models occasionally stumble on complex tasks. They might miss subtle nuances or struggle with creative writing. Still, for most everyday uses, they perform remarkably well.
Why this matters:
- We're about to see AI assistants everywhere - from smartphones to smart fridges - thanks to these digital weight loss techniques
- The AI world is proving that sometimes less really is more, as long as you know what to keep and what to trim